We all start in business to make money, a living, the freedom to build something normally in something we enjoy and are good at.
Whatever your business does it’s important to know from the start what is involved in giving yourself the best chance at being successful. Not making basic errors, in the beginning, can stop a world of pain later.
Whether you like numbers or not it’s essential you set off with a financial plan, how you will record the business transactions, what platform fits your needs, what’s expected of you legally when keeping financial records and paying staff. Most people when they start off cover the bookkeeping themselves which I highly recommend as it gives you an insight into what is needed. If you are going to do your homework.
I would recommend learning the basics of bookkeeping, too many people rely on a bookkeeping platform to do the work which is absolutely fine but to understand the numbers you need to understand how it works under the bonnet.
Having a basic knowledge of a P&L and a Balance Sheet can go a long way to helping your business succeed and also help you make decisions on what’s working and what’s not.
Too many people think being busy is being successful, or looking at a sales figure for a month and thinking WOW without knowing truly what the associated costs are to produce that turnover figure.
If you do decide to seek support and help look at bookkeepers first, they often have such a varied knowledge of many businesses and how they work, are happy to be more hands-on and are most definitely cheaper than engaging an accountant to do everything. Another tip would be don’t let price be a driving factor completely, a fixed fee agreement works well, now of course you will have a budget but make sure these three things exist:
1 – Do you connect with them?
2 – How contactable are they?
3 – Can they provide references, let you speak to their clients?
If you cover those off then you are on the path to making the right appointment.
I wish you all the very best in your new adventure, going into business will be one of the best decisions you’ll ever make so please give it a real fighting chance, understand your numbers!